According to the Zhitong Finance and Economics APP, as the second quarter earnings season kicks off, analysts believe that semiconductor companies firmly established in the field of artificial intelligence (AI) remain the most attractive stocks.
Analysts led by C.J. Muse from Cantor Fitzgerald stated in a report on Tuesday: &#34;We believe that stocks leveraged to artificial intelligence remain the most attractive. In addition, we expect prices of storage manufacturers in the NAND and HDD markets to continue to rise.&#34;
Earnings estimates for memory manufacturers have also been significantly revised upwards.
As we enter the second quarter earnings season, top stock picks include NVIDIA (NVDA.US), Western Digital (WDC.US), ASML (ASML.US), Applied Materials (AMAT.US), and NXP Semiconductors (NXPI.US).
Cantor has raised the target prices for 9 companies:
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20240717/1721186116838508.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="image.png" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20240717/1721186116838508.png"/>
Cantor also stated that semiconductor and semiconductor equipment companies are still in the early stages of the current recovery cycle.
Muse added: &#34;We are now five quarters into the recovery cycle, while the average cycle is nine quarters, we believe this cycle will be longer.&#34;
Cantor is bullish on several major companies, including NVIDIA, Micron Technology (MU.US), Broadcom, Marvell Technology (MRVL.US), Applied Materials, ASML, NXP Semiconductors, and Western Digital.
Deutsche Bank also expects that AI-driven semiconductor stocks will perform well as the second quarter earnings season unfolds. However, the bank points out that investors are becoming increasingly selective.
Deutsche Bank analyst Ross Seymore stated in a report: &#34;Investors are generally optimistic about the 'winners' of the current AI trend, but we believe that due to uncertainty about whether the positive momentum can continue, their judgment on company performance prospects is becoming more acute.&#34;
The bank has a &#34;buy&#34; rating on Broadcom, Marvell Technology, Astera Labs (ALAB.US), NXP Semiconductors, and ON Semiconductor (ON.US).
Deutsche Bank is also positive on memory manufacturers. Analyst Melissa Weathers from Deutsche Bank stated, &#34;Since the beginning of the second quarter, semiconductor stocks have risen significantly by 10-20% or more, with price-to-earnings ratios approaching or exceeding highs.&#34; &#34;We believe that earnings estimates will be a key determinant for future upside.&#34;

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A new round of US stock earnings season has begun, and analysts believe that semiconductor companies firmly established in the field of artificial intelligence are still the most attractive stocks. Cantor Fitzgerald analysts have raised target prices for 9 companies, bullish on major companies such as NVIDIA, Micron Technology, and Broadcom. Deutsche Bank also expects AI-driven semiconductor stocks to perform well, but investors are becoming more selective. Deutsche Bank has a "buy" rating on Broadcom, Marvell Technology, Astera Labs, NXP Semiconductors, and ON Semiconductor. Overall, AI chip stocks continue to attract attention, and profit forecasts for memory manufacturers have been significantly revised upwards

- Analysts believe that semiconductor companies excelling in artificial intelligence (AI) remain the most attractive stocks as the second-quarter earnings season unfolds. Cantor Fitzgerald analysts, led by C.J. Muse, anticipate continued price increases for storage manufacturers in the NAND and HDD markets. Profit estimates for memory manufacturers have been significantly revised upwards, with top stock picks including NVIDIA, Western Digital, ASML, Applied Materials, and NXP Semiconductors.
- Cantor Fitzgerald raised target prices for 9 companies, noting that the semiconductor industry is still in the early stages of the current recovery cycle. Analysts foresee a prolonged recovery period beyond the typical nine-quarter cycle. Deutsche Bank also expects strong performance from AI-driven semiconductor stocks during the earnings season, emphasizing investor selectivity.
- Despite optimism towards AI trends, investors are becoming more discerning about companies' performance outlooks. Deutsche Bank analysts, including Ross Seymore, maintain "buy" ratings for Broadcom, Marvell Technology, Astera Labs, NXP Semiconductors, and ON Semiconductor, while expressing confidence in memory manufacturers. Analyst Melissa Weathers highlights the recent substantial semiconductor stock surge and emphasizes the importance of estimate revisions for future growth.

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The new round of US stock earnings season kicks off, AI chip stocks remain analysts' "favorites"